Tapping Global Growth in Specialised Accommodation - CGS-CIMB Securities Trading Representatives Presentation 4 September 2019 - Centurion
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Tapping Global Growth in
Specialised Accommodation
CGS-CIMB Securities
Trading Representatives Presentation
4 September 2019
Centurion Corporation Limited
DISCLAIMER
This presentation should be read in conjunction with the Company’s 2Q and 1H 2019 Unaudited Financial
Statement Announcement for the period ended 30 June 2019.
This presentation and the accompanying presentation materials (if any) ("Presentation") are made for
informational purposes, without regard to the objectives, financial situation nor needs of any specific persons.
This Presentation does not constitute, or form any part of any offer for sale of or subscription of, or solicitation of
any offer to buy or subscribe for, any securities nor shall it, or any part of it form the basis of, or be relied on in
connection with, any contract or commitment whatsoever.
This Presentation was prepared exclusively for the parties presently being invited for the purposes of discussion.
Neither the Presentation nor any of its content may be distributed, reproduced or used without the prior written
consent of Centurion Corporation Limited (“Centurion” or “Company"). The Company does not make any
representation or warranty, express or implied, as to the accuracy of the information contained herein, and
expressly disclaim any and all liability based, in whole or in part, on such information, errors therein or omissions
therefrom.
This Presentation includes forward-looking statements provided with respect to the anticipated future
performance of the Company. Such forward-looking statements reflect various assumptions of the management
concerning the future performance of the Company. Accordingly, there can be no assurance that such projections
and forward-looking statements will be realised. The actual results may vary from the anticipated results and
such variation may be material. No representations or warranties are made as to the accuracy or
reasonableness of such assumptions or the forward-looking statements based thereon.
Centurion Corporation Limited 2
CONTENTS
• Corporate Overview
• Markets and Business Portfolio Overview
• Financial Highlights
• Growth Strategy
Centurion Corporation Limited 3
Company Overview
An established business with strong fundamentals operating in a growing market
The largest purpose built workers accommodation provider in Singapore and Malaysia *
with 11 operating assets and 1 asset pending completion of acquisition of land and
planning approval in Malaysia.
o Supported by consistently high occupancy rates and stable bed rates
A thriving student accommodation business in major global education hubs
o 20 operating assets in Singapore, Australia, South Korea, UK and US with high
occupancy rates on the back of strong and stable demand
o Establishing investment management platform to manage US student
accommodation assets for third party investors
Operating a high quality portfolio in key locations through two established and
professional brand platforms
Dedicated to workers accommodation Dedicated to student accommodation
Proven and reliable ability to generate quality earnings and steady cashflow from assets
A stable and experienced leadership team with an average of 20+ years in the industry
Note: * Euromonitor report, 2017
Centurion Corporation Limited 4
Corporate Milestones
Centurion has achieved a leading market position in the purpose-built accommodation sector since its first investment in 2011
Completed acquisition of Westlite Acquired 2 additional workers Awarded the tender to operate a Launched “dwell” as the Group’s
Toh Guan and 45% interest in Lian accommodation in Johor (Pasir 332-bed student accommodation, student accommodation brand
Beng-Centurion Gudang) dwell Selegie, Singapore Acquired a development site at
Renamed Centurion Corporation Commenced operations of Westlite Completed 4,100-bed Westlite Adelaide
Limited following RTO Senai Woodlands workers Dual primary listed in HK in Dec 2017
accommodation asset (SEHK code: 6090)
Completed construction and
Acquired six US assets (28.7% share) development of 280-bed dwell
East End Adelaide in October
1984 2011 2012 2013 2014 2015 2016 2017 2018
Incorporated in Singapore to provide Acquired assets in Johor (Westlite Opened the 5,800-bed Westlite Acquired four student Acquired 127-bed Princess
audio cassette tape duplication services Tebrau, 2 blocks of workers Johor Technology Park accommodation assets in Bristol, Street, Manchester and 133-
First listed on SESDAQ in January 1995 accommodation at Pasir Gudang), Completed upgrading of Newcastle and Manchester, UK bed Castle Gate Haus,
Transfer of listing from SESDAQ to the Malaysia and a piece of land in Port Westlite Toh Guan Nottingham, UK; and 208-bed
Completed 7,900-bed ASPRI- dwell Dongdaemun*, Seoul,
main board of SGX-ST (October 1998) Hedland Western Australia Acquired RMIT Village in Westlite Papan workers
Melbourne, Australia South Korea.
accommodation
Opened the 6,300-bed Westlite
Mandai, Singapore
Acquired four student
accommodation assets in
Manchester and Liverpool in the
UK
Centurion Corporation Limited 5
* Upon completion of AEP in 2Q 2019
Accommodation Growth Profile1
Accommodation Portfolio - Bed Capacity
80,000
2,145
208
70,000 2,145 2,675
332
208
2,140 2,145 896
2,420 208 2,675
0 332
2,420 2,675 896
60,000 332
456 332 332
456 2,145 896
0
1,901 2,675
50,000 332
315 25,300 456 40,400
456 23,700
34,300
No. of beds
30,700
1,906
40,000
19,800 23,700
456
30,000 14,500
13,500
20,000 10,900
34,700 34,700
27,600 26,100 28,000 28,000 28,000
23,500
10,000 19,700
13,900
5,300
0
5,300 24,800 33,200 40,362 50,072 63,208 63,748 55,408 64,956 68,556 74,656
2011 2012 2013 2014 2015 2016 2017 2018
2 2019F 2020F 3 2021F
4
Singapore (Wk) Malaysia (Wk) Australia (Stu) Singapore (Stu) United Kingdom (Stu) United States (Stu) S.Korea (Stu)
Note:
1. Based on developments at existing facilities that are already owned by Centurion Corp.
2. Includes Westlite Tuas which land lease had expired as of Jan 2018 | Includes 133-bed dwell Castle Gate Haus (14.29% owned interest) which acquisition was completed on 9 Nov 2018.
3. Includes Westlite Tampoi II c.3,600 beds to be completed in 2020
4. Includes Westlite Juru c.6,100 beds (pending acquisition of land) to be completed in 2021
Centurion Corporation Limited 6
Pipeline for Portfolio Growth
Majority of the new 160 beds for the dwell RMIT Village AEP completed as
at 2Q 2019
4 remaining beds still closed for the AEP
Leased an adjacent block in Westlite Pasir Gudang
Additional block of c.400 beds
3+3+3 lease term
Commenced development for Westlite Tampoi II
Building 3 blocks, adding c.3,600 beds
Expected to complete construction in 3Q 2020
Secured 10-year lease for new site Westlite Juniper (fka Juniper Lodge)
Adding c.1,900 beds
Lease commences from September 2019
Obtained Outline Permission from URA for Westlite Toh Guan to
reconstruct an existing block
Reconstruction will add an industrial training centre
To apply for a written permission and seek approval for an extension of the
use of the existing lease for PBWA use from 2032 to 2057
Centurion Corporation Limited 7
Diversified Business Portfolio across Geography
and Asset Type
Geographic diversification across 6 countries worldwide (SG, AU, MY, UK, US, S. Korea)
United Kingdom
2,675 beds
United States South Korea
2,145 beds 208 beds
Malaysia
c.30,700 beds Singapore
c.3,600 beds ^ c.26,100 beds
c.6,100 beds * c.1,900 beds #
332 beds
Australia
892 beds
Legend:
PBWA
PBSA
Under Planning/Development
^ c. 3,600 beds under Westlite Tampoi II (currently under development) to be completed in 2020
* c. 6,100 beds under Westlite Juru (pending acquisition of land) to be completed in 2021
# c. 1,900 beds to be added to SG from securing of a 10-year lease for Westlite Juniper, commence operations from Sep 2019
Centurion Corporation Limited 8
Diversified Business Portfolio by Asset Type and across
Geographies
PBWA PBSA
56,800 6,252
90% 10%
# beds as
at 1H 2019 Singapore
332
5%
US Australia
Singapore 2,145 892
Malaysia 26,100 34% 14%
30,700 46%
54%
S. Korea
208 UK
4% 2,675
43%
PBSA
S$23m
36%
Revenue
Malaysia 1H 2019 US Singapore
12% 3% 8%
PBWA
S$41m
64% S. Korea
1%
Australia
23%
Singapore
88% UK
65%
Centurion Corporation Limited 9
Business Overview Purpose Built Workers Accommodation
Healthy and Supportive Industry Fundamentals
Positive regulatory and demand-supply factors at work for the PBWA sector
High demand for foreign/migrant workers in multiple
countries around the world
o SE Asia
o Middle East etc
Growing awareness on the need for improved
welfare of foreign and migrant worker populations
Increased pressure for regulatory controls
o Government
- New legislation that requires employers to provide
formal workers’ accommodation has been
announced
o Corporates (RBA)
- RBA supports the rights and well-being of workers
with housing and living condition being one of the
main concerns
Strong demand-supply dynamics
Source: www.retalkasia.com/news/2018/06/11/new-law-creates-demand-formal-
workers’-accommodation-malaysia/1528671616
Note: RBA denotes the Responsible Business Alliance, previously known as Electronic Industry Citizenship Coalition
Centurion Corporation Limited 11Leading Market Position with Well-Regarded Brand
A brand synonymous with quality accommodation for foreign workers
Westlite has been professionally managing workers accommodation for
MNCs and corporates since 2011
Addresses:
o Regulatory (Government) concerns over security, hygiene, community
integration
o Compliance to corporate requirements for workers accommodation (e.g. RBA)
o Physical and mental health of workers, improving work productivity
Westlite characteristics:
o Self-contained permanent structure in a secure environment
o Freehold or long term leases of between 23 –99 years
o Spacious apartment style living spaces with en-suite or shared bathrooms and
cooking facilities
o Comprehensive amenities including supermarket, food court, sick bay, gym,
indoor and outdoor community facilities
Westlite rents typically commands a premium over its competitors
Centurion Corporation Limited 12Leading Market Position with Well-Regarded
Brand (continued)
• Providing comprehensive amenities and facilities
• Holistic approach to ensure well-being of residents through a comprehensive range of
community programs
Superior Building Design Well Ventilated Bedrooms Recreation Areas 24 hrs Security & Surveillance ATM
Spacious
Face Recognition Turnstile System Well Stocked Supermarket Free Wi-Fi Access & Internet Room Training/ Multi-purpose Rooms Kitchen
Street Soccer
Street Soccer Sepak Takraw Basketball & Volleyball Courts Cricket Courts Gym
Centurion Corporation Limited 13Workers Accommodation – Singapore
4 operating assets with capacity of c.26,100 beds
o Assets in good locations, meeting regulatory requirements for facilities and amenities
On a portfolio basis, assets are achieving healthy average occupancy rates of c.97% for 1H 2019
Westlite Woodlands
• c.4,100 beds
• Land tenure: 30 years (wef 2013)
• 100% owned
Westlite Juniper
• c.1,900 beds (from Sep 2019)
• Land tenure: 10 years (wef 2019), with option to
renew for another 5 years
• 100% owned
Westlite Toh Guan
ASPRI-Westlite Papan • c.7,800 beds
• 7,900 beds • Land tenure: 60 years (wef 1997)
Westlite Mandai • Land tenure: 23 years (wef 2015) • 100% owned
• c.6,300 beds • 51% owned
• Land tenure: Freehold
• 45% owned
Centurion Corporation Limited 14Workers Accommodation Landscape
Regulated Singapore PBWA sector with demand outstripping supply
c.719K - Total Work Permit Holders in Singapore
Excludes Foreign Domestic Workers sectors; includes
Demand
Construction, Marine, Process, Oil and Gas; Services and
Workers from construction Manufacturing sectors Workers from marine, oil & gas,
sector petrochemical processing sectors
c.380K* - Total Work Permit Holders
All sectors excluding Services and Manufacturing sectors are
required to stay in approved housing types
Purpose Build Workers Supply Shortage (120,000 – 150,000)
Accommodation
Factory On-site Non Purpose
222,600 Converted Dorm Dorm Built / Others
109,300 113,300 c.60,000 c.60,000 c.25,600
Supply
Long term PBWA Short term PBWA FCD On-site Others
Source: Singapore Ministry of Manpower (as at Dec 2018) | * Centurion research
Centurion Corporation Limited 15Workers Accommodation Landscape
• Population of Non-Domestic Foreign Workers with work permits (excluding
Foreign Domestic Workers) was at 718,8001 as at December 2018 (vs
718,400 as at Dec 2017)
• No new supply expected in 2019, current supply reducing
• c.8,600 beds2 have expired in 2018
• c.19,500 beds2 estimated to expire in 2019
Singapore
• Demand outstrip supply by c.120,000 – 150,000 beds2 for PBWA3
• Government policies encourage shift of foreign workers to PBWA
• non-Malaysians from the manufacturing sector will not be allowed to rent entire HDB
flats – only individual rooms
• new regulations for FCDs – operators to provide free Wi-Fi, personal lockers, a way to
provide feedback on their accommodations and at least one sick bay or contingency
plans to contain infectious diseases
Note:
1. Ministry of Manpower – Foreign workforce numbers
2. Centurion Corp Research
3. PBWA denotes Purpose Built Workers Accommodation
Centurion Corporation Limited 16Workers Accommodation – Malaysia
Current capacity of c.30,700 beds (7 operating assets); c.9,700 beds in the pipeline (2 assets)
On a portfolio basis, the 6 operational assets (excluding Westlite Bukit Minyak) are achieving average occupancy
rates of c.90% for 1H 2019
Westlite Tampoi Westlite Tampoi II (under
• c.5,300 beds development)
• Land tenure: Freehold • c.3,600 beds
Westlite Juru (pending acquisition of land)
• 100% owned • Land tenure: Freehold
• c.6,100 beds
• 100% owned
• Land tenure: 99 years (wef 2014)
• 100% owned
Westlite Pasir Gudang
• c.2,000 beds
Westlite Bukit Minyak Westlife Johor Tech Park • Land tenure: 99 years (wef 1986)
• c.6,600 beds • c.5,800 beds • 100% owned
• Land tenure: Freehold • Land tenure: 99 years (wef 2013)
• 100% owned • 100% owned • c.400 beds (leased block)
• Land tenure: 9 years (wef 2019)
• 100% owned
Westlite Senai II Westlite Senai Westlite Tebrau
• c.5,900 beds • c.2,600 beds • c.2,100 beds
• Land tenure: Freehold • Land tenure: Freehold • Land tenure: 60 years (wef 2000)
• 100% owned • 100% owned • 100% owned
Centurion Corporation Limited 17Workers Accommodation Landscape
• Large foreign workers population in Malaysia
More than c.2 million1 registered legal foreign workers in Malaysia
c.819,0001 are foreign manufacturing workers
c.1 million2 unregistered foreign workers
Malaysia
• Government policies encourage proper housing for foreign workers
Passing of Workers’ Minimum Standard of Housing and Amenities
(Amendment) Bill 20193
• Government supports hiring foreign workers to ease labour shortage
Source: Malay Mail,15 July 2019,
‘Bill for workers’ housing and
amenities passed’
Note:
1. Retalk Asia – New law creates demand for formal workers’ accommodation – Malaysia – 11 Jun 2018
2. The Straits Times – KL starts round-up of illegal workers – 31 Aug 2018
3. Malay Mail – Bill for workers' housing and amenities passed – 15 Jul 2019
Centurion Corporation Limited 18Workers Accommodation
Diversified, stable customer base
• more than 1,084 customers in Singapore and Malaysia
• serves companies from diverse industries
• ability to cater to multiple industries insulate the Group
• less affected by economic fluctuations or government policies affecting any one industry
S/N. Industry Percentage (%)
1 Construction 43.5
2 Oil & Gas 28.1
3 Manufacturing 11.9
4 Marine 6.7
5 Service 5.2
6 Engineering 4.5
7 Others 0.1
Total 100
^ Breakdown of workers revenue by industry for Singapore and Malaysia only
* As at 30 June 2019
Centurion Corporation Limited 19Business Overview Purpose Built Student Accommodation
Healthy and Supportive Industry Fundamentals
A fast-growing, in-demand asset class for institutional investors
Supply remains low in mature markets such as Australia, UK and US, where
the number of PBSA beds is measured against total student populations in each
destination
o national provision rates (beds to full time higher education students) at 11%
in Australia, 24% in the UK1, 12% in US
A resilient and in demand asset class for institutional investors
o total private investment in student housing is growing quickly – up nearly
90% since 2013, reaching US$17.5 billion1 in 2017
o accounts for only a fraction of the US$223 billion invested in residential real
estate in 2018
o sector offers investors yields between 4-7% annually with less volatility
Source: 1. Savills – Global Living Report 2018
Centurion Corporation Limited 21Leading Market Position with Well-Regarded Brand
Exciting growth prospects in the higher education segment
Centurion owns and manages 20 student accommodation assets with 6,256 beds
across Australia, Singapore, South Korea, UK and US
o 12 assets are fully owned and managed
o 8 are owned through private funds and joint ventures, under management
services
• 6 assets in US (28.74% owned)
• 1 asset in Nottingham, UK (14.29% owned)
• 1 asset in Seoul, S. Korea (55% owned)
Consistently achieved healthy occupancy rates above 90% over the past 3 years
o close relationships with nearby universities and student agent partners
o diversified customer base including local domestic students and
international students from PRC, India, SE Asia, Europe and the Americas
• supported by sales & marketing offices in PRC and SE Asia
Launch of the dwell brand in Feb 2017 has enabled Centurion to embark on
Asset Light Strategies to grow its portfolio and its fee-based investment, asset
and property management services
o establishment of Centurion US Student Housing Fund in Nov 2017
(US$89.5 million)
o First closing of Centurion Student Accommodation Fund in Nov 2018 (S$70
million in committed capital)
Centurion Corporation Limited 22Leading Market Position with Well-Regarded Brand (continued) • Comprehensive amenities and facilities for a conducive environment • Active residential life programs promote an engaged community Centurion Corporation Limited 23
Student Accommodation
20 operating assets with a total capacity of 6,252 beds (UK, US, Australia,
South Korea and Singapore)
On a portfolio basis, the assets are achieving high average occupancy rates for FY 2018
Singapore Australia
dwell Selegie
• 332 beds dwell Adelaide
• Land tenure: 3+3+2 years (wef 2015) • 280 beds
• 100% owned • Land tenure: Freehold
• 100% owned
South Korea
RMIT Village
• 612 beds (4 beds still closed for AEP)
• Land tenure: Freehold
• 100% owned
dwell Dongdaemun
• 208 beds
• Land tenure: Freehold
• 55% owned
Centurion Corporation Limited 24Student Accommodation Landscape
• International students for higher education grew 11% y-o-y to c. 690,468 students with
students from China (204,940) and India (89,214) being the top two contributing
countries1
Australia • On-shore international students projected to increase from c. 690,4681 today to
c.720,000 - 990,000 by 20252
• There are 690,4681 full-time higher education students but c. 76,2012 PBSA beds in
Australia, thus, translating into international student to bed ratio of 9:1
University of South Australia, Adelaide RMIT University, Melbourne
1. Australian Government Department of Education and Training – No. of international students in Australia
2. Knight Frank Research & Consulting – Student Housing 2018
Centurion Corporation Limited 25Completion of dwell East End Adelaide
The development of the new 280-bed dwell East End Adelaide has been completed in Q4 2018
and has been open for registration and available for rent from Jan 2019, catering to the student
intake for the new academic year from Feb 2019
The freehold asset is strategically located in the heart of Adelaide’s city centre and walking
distance to University of Adelaide and the University of South Australia
Provides quality student accommodation which is in close proximity to the main Rundle Mall
shopping strip
Centurion Corporation Limited 26Completion of RMIT Village AEP
Majority of the new c.160 beds under development for the RMIT Village AEP have been
completed as at Jun 2019.
4 remaining beds are still closed for AEP.
Occupancy for is expected to ramp up progressively over the course of 2019.
Centurion Corporation Limited 27Student Accommodation Landscape – South Korea
• One of Asia’s strongest representatives in the QS Best Student Cities ranking – in the
top 10 since 20151
Seoul, • More than 18 universities were featured in QS World University Ranking 2018 with
South Korea 640,000 students and hosting 58% of the country’s international student population2
• In the immediate vicinity of dwell Dongdaemun, c.59,000 full-time domestic and
international student are enrolled in four different universities3
Kyunghee University Hankuk University KAIST University of Seoul
1. QS Best Student Cities Rankings 2015-2018
2. QS World University Ranking 2018
3. QS Kyunghee University, University of Seoul, KAIST and Hankuk University of Foreign Studies
Centurion Corporation Limited 28Student Accommodation – UK
10 operating assets with a total capacity of 2,675 beds
Presence in five major cities with well known universities
dwell MSV dwell MSV South
dwell 121 Princess Street dwell Garth Heads
• 1,017 beds • 355 beds
• 127 beds • 181 beds
• Land tenure: Freehold • Land tenure: Freehold
• Land tenure: Freehold • Land tenure: 125 yrs wef 1995
• 100% owned • 100% owned
• 100% owned • 100% owned
Newcastle
Manchester
Liverpool
Nottingham
dwell The Grafton dwell Beechwood House dwell Weston Court
• 145 beds • 37 beds • 140 beds
• Land tenure: Freehold • Land tenure: 125 yrs wef 2009 • Land tenure: 125 yrs wef 2008 dwell Castle Gate Haus
• 100% owned • 100% owned • 100% owned • 133 beds
• Land tenure: Freehold
Bristol • 14.29% owned^
^ Centurion owns 14.29% of the Centurion
Student Accommodation Fund, which acquired
dwell Castle Gate House dwell Cathedral Campus
• 383 beds dwell Hotwells House
• Land tenure: 250 yrs wef 2007 • 157 beds
• 100% owned • Land tenure: 125 yrs wef 2009
• 100% owned
Centurion Corporation Limited 29Student Accommodation Landscape - UK
• Total higher education student numbers stable at c.1.8 million (2018/19)1
• Across the UK, there are currently 627,115 purpose-built bed spaces. As such, this
United Kingdom translates into international student to bed ratio of 2.8:11
• Over 12,000 have been taken out to be refurbished in 2018/19, and a further 31,348
beds are planning to be delivered in 2019/201
Total full time higher education students2
(number of students)
Manchester 64,500 Newcastle 43,000
Liverpool 43,285 Bristol 40,700
Nottingham 65,000
Manchester Metropolitan University The University of Manchester
1. Cushman & Wakefield – Student Accommodation Report 2018
2. Knight Frank – UK Student Housing Update
Centurion Corporation Limited 30Student Accommodation – USA
6 operating assets with a total capacity of 2,145 beds^
Supporting universities with good national rankings and sizable student populations
Achieving healthy average occupancy for 1H 2019
Towers on
State
Towers on State
231 beds
Tenure: Freehold
College and
Crown
College and
Crown
206 beds
Tenure: Freehold
Statesider
Statesider
226 beds
Tenn
Tenure: Freehold
Street
Tenn Street
624 beds
Tenure: Freehol
Stadium View
216 beds Logan Square
^ Centurion owns 28.7% of the Centurion US
Tenure: Freehold 642 beds
Student Housing Fund and is the portfolio manager
Stadium Tenure: Freehold
as well as provider of property management
View services.
Logan
Square
Centurion Corporation Limited 31Student Accommodation Landscape - USA
• c.20.3 million collegiate-age student population including 1.044 million international
students1
United States • Undergraduate enrolment increased by 28% between 2008 and 2016 and is projected
to increase 3% by 2027 to 17.4 million2
• PBSA in the US catering to an estimated 12% of all tertiary education students1
Total tertiary education students2
(approximate number of students)
Wisconsin Alabama Connecticut Florida Texas
University of Wisconsin - Auburn University Yale University Florida State University Texas A&M University
Madison
43,400 27,300 12,300 40,800 60,400
University of Wisconsin - Madison Yale University Florida State University
1. Savills - Spotlight World Student Housing 2017/18
Centurion Corporation Limited 2. Savills - Spotlight World Student Housing 2016/17 32Financial Highlights
Strong Financial Growth of Accommodation Business
Accommodation - Revenue1 (S$'000) Accommodation - Net Profit1 (S$'000)
135,386 49,069
140,000 50,000 -21%
-13%
118,148 15% 118,336 28%
45,000
120,000 38,418 38,870
CAGR: 37% 40,000 CAGR: 33% 10%
2011 - 2018 99,472 19% 2011 - 2018 35,189
100,000 17%
35,000
30,142
30%
76,460
30,000
80,000 54%
63,471 25,000
62% 20,408
19,631
60,000
47,275 20,000 43%
26%
37,381 13,761
40,000 15,000
156%
188%
10,000 5,380
20,000 12,987
5,000
- -
2011 2012 2013 2014 2015 2016 2017 2018 1H 2019 2011 2012 2013 2014 2015 2016 2017 2018 1H 2019
Revenue Net Profit
Note:
1. From core business operations
Centurion Corporation Limited 342Q and 1H 2019 Financial Overview
S$’000 2Q 2019 2Q 2018 Change 1H 2019 1H 2018 Change
Revenue 32,907 30,374 8% 64,192 60,476 6%
Gross Profit 24,656 22,012 12% 46,994 43,567 8%
Gross profit margin 75% 72% 3pp 73% 72% 1pp
Net Profit After Tax 11,465 11,063 4% 20,558 21,552 -5%
Net Profit1 11,465 11,063 4% 20,558 21,552 - 5%
Net Profit (Equity
holders)2 10,191 9,767 4% 18,067 18,896 - 4%
Net Profit Margin1 35% 36% - 1pp 32% 36% - 4pp
The higher revenue was mainly attributable to revenue contribution from dwell East End Adelaide in Australia and
dwell Princess Street in the UK as well as the increase in rental rates from the Group’s UK assets.
Decrease in Net Profit After Tax was mainly due to start-up costs incurred for the new properties and higher interest
expense on additional borrowings to fund the Group’s expansion.
Note:
1. Net Profit and Net Profit Margin arising from Profit from core business operations
2. Net Profit (Equity holders) = Profit from core business operations attributable to equity holders, which excludes the 49% interest in ASPRI-Westlite.
Centurion Corporation Limited 35Segment Breakdown
Strong Accommodation Business Results in 2Q 2019
S$’000 Accommodation Optical Disc
Workers Students
2Q 2019 2Q 2018 Change 2Q 2019 2Q 2018 Change 2Q 2019 2Q 2018 Change
Revenue 20,539 20,106 2% 12,049 9,693 24% 319 575 -45%
Segment Profit 12,869 12,708 1% 5,685 3,848 48% 99 158 -38%
Segment Margin 63% 63% N/M 47% 40% 7pp 31% 27% 4pp
Revenue (S$'000) Segment Profit (S$'000)
35,000 20,000 1%
1%
2% 18,000 1%
30,000
16,000
37% 30% 23%
25,000 32% 14,000
20,000 12,000
10,000
15,000 8,000
10,000 62% 6,000 69% 76%
66%
4,000
5,000
2,000
0 0
2Q 2019 2Q 2018 2Q 2019 2Q 2018
Workers Accom Students Accom Optical Disc Workers Accom Students Accom Optical Disc
* Segment Profit from core business operations
Centurion Corporation Limited 36Segment Breakdown
Strong Accommodation Business Results in 1H 2019
S$’000 Accommodation Optical Disc
Workers Students
1H 2019 1H 2018 Change 1H 2019 1H 2018 Change 1H 2019 1H 2018 Change
Revenue 40,479 40,351 0% 22,992 19,154 20% 721 971 -26%
Segment Profit 25,273 25,158 0% 9,825 7,572 30% 195 395 -51%
Segment Margin 62% 62% N/M 43% 40% 3pp 27% 41% -14pp
Revenue (S$'000) Segment Profit (S$'000)
70,000 40,000
1%
60,000 1% 1%
35,000
50,000 36% 30,000 28% 23%
32% 1%
1% 25,000
40,000
30,000 20,000
20,000 63% 67% 15,000
72% 76%
10,000 10,000
5,000
0
1H 2019 1H 2018 0
1H 2019 1H 2018
Workers Accom Students Accom Optical Disc
Workers Accom Students Accom Optical Disc
* Segment Profit from core business operations
Centurion Corporation Limited 37Balance Sheet Highlights
S$’000 30 Jun 2019 31 Dec 2018 Change %
Cash & Bank Balances 51,818 62,902 - 18%
Current Assets 79,423 93,990 - 15%
Non Current Assets 1,264,563 1,227,750 + 3%
Total Assets 1,343,986 1,321,740 + 2%
Current Liabilities 89,980 92,913 - 3%
Non Current Liabilities 722,575 703,876 + 3%
Total Liabilities 812,555 796,789 + 2%
Net Assets 531,431 524,951 + 1%
Net Gearing Ratio1 54% 54% N/M
Healthy Balance Sheet – S$51.8 million in cash and bank balances
Cash and bank balances – reduction by S$11.1 million mainly due to redemption of MTN Series 3 Notes and
payment of dividends to equity holders of the Company
Non Current Assets – increase due to recognition of right-of-use assets from adoption of IFRS 16
Current Liabilities - decrease largely due to settlement of the payables relating to construction costs and
recognition of advance rental to the income statement
Non Current Liabilities – Increase due to adoption of new IFRS 16 which resulted in recognition of lease
liabilities of S$35.5 million
Average long term bank debt maturity profile of 8 years
Interest cover is well within interest cover threshold
o 2.8 times (3.6 times excluding MTN interest, interest on lease liability and bank facility fees)
Note:
1. The net gearing ratio is computed as borrowings less cash and bank balances divided by total capital. Total capital is calculated as borrowings plus net assets of the Group.
Centurion Corporation Limited 38Key Ratios
1H 2019 FY 2018
Earnings Per Share1 2.2¢ 4.1¢
NAV per share 60.8¢ 60.3¢
Share Price 40.0¢3 41.5¢2
Dividend 1.0¢4 2.0¢
Market Capitalisation S$336m3 S$349m
Note:
1. Excluding one-off items
2. As at 31 December 2018
3. As at 28 June 2019
4. An interim dividend of 1.0 Singapore cent per ordinary share was declared for 1H 2019
(equivalent to 5.64 Hong Kong cents per ordinary share) which will be paid on 12
September 2019
Centurion Corporation Limited 39Growth
Strategy
40Key Strengths
1 Healthy and Supportive Industry Fundamentals
2 Leading Market Position with Well-Regarded Brand Positioning
3 Diversified Business Portfolio across Geography and Asset Type
4 Quality Assets in Good Location with Supportive Operating Conditions
5 Resilient Portfolio with High Occupancy and Recurring Income
6 Broad Base of Credible Customers across Multiple Industries
7 Established Track Record of Portfolio Growth and Financial Performance
8 Significant Financial Flexibility Given Debt Profile and Funding Sources
9 Experienced and Competent Management Team
Centurion Corporation Limited 41Experienced and Competent Management Team
Highly qualified senior management with extensive experience
Kong Chee Min Foo Ai Huey Kelvin Teo Ho Lip Chin Leong Siew Fatt
CEO CFO COO, CIO, Head,
Accommodation Accommodation Student Accommodation
Business Business Business
Appointed as the Group’s Appointed as the Group’s Responsible for the day-to- Responsible for growing Responsible for overall
CEO in August 2011 and CFO in August 2011 and day operations and the Group’s management of the
oversees its operations and oversees its finance expansion of the Group’s Accommodation Group’s Student
strategic growth accounting and tax accommodation business Business Accommodation
Joined the Group in 1996 functions First Vice President of Over 20 years of Business across the
and was its Regional CEO Over 25 years of Dormitory Association of experience in real estate United Kingdom, United
and Finance Director experience in finance and Singapore and hospitality industries States, South Korea,
accounting related across Asia Pacific Australia and Singapore.
Certified Public Accountant Over 30 years of
with over 26 years of finance experience experience in the property Over 32 years of
and corporate management Named Best CFO (Small and accommodation experience in technical,
experience Cap Category – companies development and operational and
with less than S$300 million management business management experience
Named Best CEO (Small
Cap Category – companies in market capitalisation) at
with less than S$300 million the Singapore Corporate
in market capitalisation) at Awards 2017
the Singapore Corporate
Awards 2016
Centurion Corporation Limited 42Latest Corporate Development
SINGAPORE BUSINESS AWARDS 2019
The Enterprise Award
LE FONTI AWARDS 2019
Customised Accommodation Management Services
• CEO of the Year
• Best Provider of the Year
SINGAPORE CORPORATE AWARDS 2019
Best Annual Report Award
• Bronze Winner (Mid-cap Category)
INAUGURAL SECURITY INDUSTRY TRANSFORMATION AWARDS 2019
Gold Award for Early Adopters of Security Transformation (Individual)
• Awarded to Mr Lim Choon Kwang (Director, Global Security)
Centurion Corporation Limited 43Growth Strategy
Strategic focus for growth of the accommodation1 business in a prudent manner
Four developments/Asset Enhance Programmes completed in 2H
2018 and 1H 2019, adding 7,248 beds in 2019
Organic Additional PBWA leases and development projects to further add
Growth 2,300 beds in 2019, 3,600 beds in 2020 and 6,100 beds in 2021
To enhance project returns through selective asset enhancement
initiatives across existing portfolio assets
Selectively grow accommodation business through strategic
Acquisition acquisitions in existing and new markets
Growth Explore new accommodation asset types which can provide
diversification to the company and where the company can add value
Scalable growth through joint ventures and asset light strategies,
Investment including the establishing of private investment funds
Management
Providing fee-based investment, asset and property management
Platform
services
Note:
1. The operating environment for the Group’s Optical Disc Business is likely to remain challenging as market demand for physical storage media falls with consumers shifting to internet downloads and streaming
from physical packaged media. The Group will carefully calibrate and scale down its factory capacity according to demand, and exercise prudent cost management strategies to ensure that the business continues
to contribute positively to overall profitability and generates cash flows to meet the Group’s expansion needs.
Centurion Corporation Limited 44Q&A For any enquiries, please contact: Investor Relations Manager Mr George Goh | Mr David Oh george.goh@centurioncorp.com.sg | david.oh@centurioncorp.com.sg Tel: +65 6745 3288 W: www.centurioncorp.com.sg Centurion Corporation Limited (Incorporated in the Republic of Singapore with limited liability)
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